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Why Is Univar (UNVR) Up 16.9% Since Last Earnings Report?
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It has been about a month since the last earnings report for Univar . Shares have added about 16.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Univar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Univar’s Earnings and Revenues Beat Estimates in Q1
Univar recorded profits of $180.8 million or $1.06 per share in first-quarter 2022, up from $66.2 million or 39 cents per share in the year-ago quarter.
Barring one-time items, earnings per share were $1.07, up from 43 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 84 cents.
The company’s revenues were $2,882.6 million in the quarter, up around 33.7% year over year. The top line beat the Zacks Consensus Estimate of $2,601.6 million.
The upside in sales can be attributed to the favorable impact of chemical price inflation, market share gains and higher industrial demand.
Segment Review
Revenues from the USA division rallied around 42.6% year over year to $1,843.2 million in the quarter. The upside was primarily driven by higher chemical prices, industrial demand and market share gains.
The EMEA segment raked in revenues of $562.2 million, up roughly 11.1% year over year. Chemical price inflation and market share gains were partly offset by the effects of the Distrupol divestiture.
Revenues from the Canada segment went up around 31.7% year over year to $293.4 million. The upside was led by chemical price inflation and market share gains.
Revenues from the LATAM unit rose roughly 37.4% to $183.8 million, driven mainly by higher chemical prices and the Sweetmix acquisition.
Financials
Univar ended the quarter with cash and cash equivalents of $245.4 million, down 2.4% sequentially. Long-term debt was $2,416.9 million, up around 8.7% sequentially.
Net cash used by operating activities was $134.4 million in the first quarter, up from $92.3 million a year ago.
Outlook
The company expects adjusted EBITDA for second-quarter 2022 to be $270-$290 million. For 2022, adjusted EBITDA is forecast in the band of $1,000-$1,050 million. The guidance reflects anticipated continued strong business conditions, market share growth and benefits from Nexeo net synergies. The company also sees net free cash flow for 2022 in the range of $400-$450 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 42.12% due to these changes.
VGM Scores
Currently, Univar has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Univar has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Univar belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, FMC (FMC - Free Report) , has gained 7.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
FMC reported revenues of $1.35 billion in the last reported quarter, representing a year-over-year change of +13%. EPS of $1.88 for the same period compares with $1.53 a year ago.
FMC is expected to post earnings of $1.89 per share for the current quarter, representing a year-over-year change of +4.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for FMC. Also, the stock has a VGM Score of D.
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Why Is Univar (UNVR) Up 16.9% Since Last Earnings Report?
It has been about a month since the last earnings report for Univar . Shares have added about 16.9% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Univar due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Univar’s Earnings and Revenues Beat Estimates in Q1
Univar recorded profits of $180.8 million or $1.06 per share in first-quarter 2022, up from $66.2 million or 39 cents per share in the year-ago quarter.
Barring one-time items, earnings per share were $1.07, up from 43 cents in the year-ago quarter. The bottom line surpassed the Zacks Consensus Estimate of 84 cents.
The company’s revenues were $2,882.6 million in the quarter, up around 33.7% year over year. The top line beat the Zacks Consensus Estimate of $2,601.6 million.
The upside in sales can be attributed to the favorable impact of chemical price inflation, market share gains and higher industrial demand.
Segment Review
Revenues from the USA division rallied around 42.6% year over year to $1,843.2 million in the quarter. The upside was primarily driven by higher chemical prices, industrial demand and market share gains.
The EMEA segment raked in revenues of $562.2 million, up roughly 11.1% year over year. Chemical price inflation and market share gains were partly offset by the effects of the Distrupol divestiture.
Revenues from the Canada segment went up around 31.7% year over year to $293.4 million. The upside was led by chemical price inflation and market share gains.
Revenues from the LATAM unit rose roughly 37.4% to $183.8 million, driven mainly by higher chemical prices and the Sweetmix acquisition.
Financials
Univar ended the quarter with cash and cash equivalents of $245.4 million, down 2.4% sequentially. Long-term debt was $2,416.9 million, up around 8.7% sequentially.
Net cash used by operating activities was $134.4 million in the first quarter, up from $92.3 million a year ago.
Outlook
The company expects adjusted EBITDA for second-quarter 2022 to be $270-$290 million. For 2022, adjusted EBITDA is forecast in the band of $1,000-$1,050 million. The guidance reflects anticipated continued strong business conditions, market share growth and benefits from Nexeo net synergies. The company also sees net free cash flow for 2022 in the range of $400-$450 million.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 42.12% due to these changes.
VGM Scores
Currently, Univar has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Univar has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Univar belongs to the Zacks Chemical - Diversified industry. Another stock from the same industry, FMC (FMC - Free Report) , has gained 7.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2022.
FMC reported revenues of $1.35 billion in the last reported quarter, representing a year-over-year change of +13%. EPS of $1.88 for the same period compares with $1.53 a year ago.
FMC is expected to post earnings of $1.89 per share for the current quarter, representing a year-over-year change of +4.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for FMC. Also, the stock has a VGM Score of D.